Berkeley already has a $30 million budget deficit. Why add a new tax now?
Why should Berkeley pay for a bank that also lends money to Oakland, Richmond, and other cities?
This tax increases every year automatically. How is that fair to taxpayers?
The bank doesn't exist yet, and might never get approved. Why fund something that isn't real?
Don't programs like IBank, the SBA, and municipal bonds already do this?
Isn't a public bank too risky? The only real example is North Dakota, and Berkeley isn't North Dakota.
If Berkeley can't manage its own budget, why should we trust it to run a bank?
Won't this just let politicians play politics with our money?
If Berkeley can't manage its own budget, why should we trust it to run a bank?
Answer
The public bank won't be run by City Hall staff or elected officials. It will be run day-to-day by experienced, professional bankers who carry the same fiduciary duty, licensing requirements, and regulatory oversight as any other bank in the country. Elected officials and community members hold seats on the governing board that sets policy and lending priorities, but the institution answers to bank regulators first, exactly like every bank does.